I use a Maton (Australian made) guitar that has a body about the size of a 00, (it fits pretty well in a Martin 00 case.) but is somewhat deeper--like the Gibson Nick Lucas special. It fills up a large room better than some larger guitars. I also agree with those who say that the treble response is better in a smaller guitar.I have my eye on a Martin 00-16S. It is an all solid mahogony guitar with a slotted headstock and it joins at the 12th fret. The nut width is 3/4 in instead of the more common 11/16 that Martin seems to prefer. It looks a beauty.
However, where I put my eye and where I put my money are two different things. So far only two have come into Sydney and they were bought up almost before they left the boat. I am waiting for some more to come in. I don't know much about mahogony as a tone wood, and I will have to play it and stand back and hear someone else play it.
The price here is the equivalent of $800 US dollars. That means the discount houses will be selling for even less.
Murray